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Asymmetric Shocks Inside Future EMU

Asymmetric Shocks Inside Future EMU

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In this paper, we focus on the issue of shocks asymmetries in the future European Monetary Union. Relying on the technique of codependence developed by Gourieroux and Peaucelle [1989, 1993], we propose a new method which, unlike the analysis of Bayoumi and Eichengreen [1992], does not require any arbitrary restrictions. As a whole, our results support the idea of a two-speed Europe. (JEL Classification: C22, F33, F42)

Ⅰ. Introduction

Ⅱ. Empirical Evaluations of the Degree of Asymmetry

Ⅲ. Asymmetric Shocks and Codependence

Ⅳ. Results and Limitations

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